The Lighter Side Of The Cloud – The Escape
The Lighter Side Of The Cloud – Cost Savings
The Lighter Side Of The Cloud – Frobisher

Cloud Computing: Risks vs Benefits – Part 2

Cloud Computing: Risks vs Benefits – Part 2

In Part 1 of this two-part article, I discussed the context in which, in spite of some drawbacks, cloud computing made sense in the long run (See: Cloud Computing: Risks vs Benefits – Part 1). In the second and concluding part, I carry this argument further and talk about some opposing points of view.

I would like to introduce the concept of BATNA at this point. BATNA, or the best alternative to a negotiated agreement, is a concept in negotiation theory that defines the course of action that will be taken by a party if the current negotiations fail and an agreement cannot be reached. According to this theory, an agreement makes sense as long as it’s better than the next-best alternative. Extending this to the field of computing, going on the cloud makes sense as long as it’s better than the next-best alternative of sticking with traditional IT infrastructure.

Now, in order for a proper assessment, it is necessary to determine what the next-best alternative offers. Other than the obvious advantage of a mature technology that people understand, cloud computing is better on the parameters of costs (See: How Cloud Computing Can Save You Money), scalability (See: Zynga, the Latest Cloud Computing Success) and disaster recovery (See: Earthquakes and Cloud Computing). Even on the issue of security on which cloud computing is pilloried, it can offer distinct advantages that a CD of confidential information that can be misplaced (and has been) cannot (See: Is Cloud Computing Secure? Yes, Another Perspective).

On that note, here’s what MacDonnell Ulsch, CEO and Chief Risk Analyst of the Boston, MA-based ZeroPoint Risk Research, LLC, and keynote speaker the recent Federal Financial Institutions Examination Council (FFIEC) Information Technology Conference held in Washington, DC, had to say about the possible pitfalls of going on to the cloud: “Technology innovation is in part what makes America great, and it is a clear demonstration that the U.S. is a technology leader. But we often fail to reasonably assess the regulatory and other risks associated with new technologies and applications. Failing to meet the mandatory minimum requirements associated with data security and privacy regulations could lay a foundation for other highly impactful risk.”

While some impressive figures of half a billion electronic records in the United States having been compromised over the last six years were mentioned, not all were on the cloud; even if a large part were, it has to be weighed against the billions of dollars businesses are saving and will continue to save due to cloud computing. That is why not only businesses (See: Cars on the Cloud: Microsoft and Toyota Join Hands in Cloud Computing Space ), but traditionally security-paranoid institutions like financial institutions (See: What NYSE’s Adoption of Cloud Computing Means for the Industry ) and the US military have started to embrace the technology (See: US Military Asks for Private Sector’s Help to Understand Cloud Computing).

That is why former federal Chief Information Officer Vivek Kundra, who recently left office, has termed security and privacy concerns as “unfounded and ridiculous” excuses used by federal agencies to avoid adopting cloud computing. In his opinion, the BATNA of “IT cartels” that would “bid for government contracts and their expertise wasn’t superior technology or innovation” but “a PhD in understanding how to navigate the complicated procurement process” was not feasible.

We cannot continue on that path in this tough fiscal environment that we’re in. That is why as part of the administration we instituted a ‘cloud first’ policy, recognizing that some of the most major innovation is not happening within the old model of what I call the ‘IT cartel’ where people continue to win this contract and their objective is essentially to put in as many people as possible and bill at exorbitant rates.” He said.

In conclusion, yes, problems exist, and perhaps, will continue to exist for some more years; but, cloud computing is the future, and the earlier businesses understand that, the more they will benefit.

By Sourya Biswas

sourya

Sourya Biswas is a former risk analyst who has worked with several financial organizations of international repute, besides being a freelance journalist with several articles published online. After 6 years of work, he has decided to pursue further studies at the University of Notre Dame, where he has completed his MBA. He holds a Bachelors in Engineering from the Indian Institute of Information Technology. He is also a member of high-IQ organizations Mensa and Triple Nine Society and has been a prolific writer to CloudTweaks over the years... http://www.cloudtweaks.com/author/sourya/

Sorry, comments are closed for this post.

Support

Recent

Beyond Gaming: Three Practical Applications For Oculus Rift

Beyond Gaming: Three Practical Applications For Oculus Rift

Three Practical Applications For Oculus Rift  Since the announcement of the Oculus Rift in 2012 gamers and game developers alike have been frenzied trying to both get their hands on the unit or build their own proprietary VR machine. The VR gold rush has since lead to the announcement of Project Morpheus from Sony and…

The Lighter Side Of The Cloud – Due Diligence

The Lighter Side Of The Cloud – Due Diligence

By David Fletcher Please support our comics by sharing, licensing or visiting our cloud sponsors (Below). Your support goes a long way in allowing us to continue to produce our lighthearted comics each week.   About Latest Posts souryaSourya Biswas is a former risk analyst who has worked with several financial organizations of international repute,…

Popular

2014 Future Of Cloud Computing Survey Results

2014 Future Of Cloud Computing Survey Results

Engine Yard Joins North Bridge Venture Partners, Gigaom Research and Industry Collaborators to Unveil 2014 Future of Cloud Computing Survey Results SAN FRANCISCO, CA–(Marketwired – Jun 25, 2014) – Engine Yard, the leading cloud application management platform, today announced its role as a collaborator in releasing the results of the fourth annual Future of Cloud Computing Survey,…

PaaS vs Docker – why is it such a heated debate?

PaaS vs Docker – why is it such a heated debate?

PaaS vs Docker Docker started as just a software container on top of a Linux operating system which seemed like a simple optimization for a fat hypervisor. Its disruptive force however comes from the fact that it does force us to rethink many of the layers of the cloud stack. Starting from the way we…

5 Considerations You Need To Review Before Investing In Data Analytics

5 Considerations You Need To Review Before Investing In Data Analytics

Review Before Investing In Data Analytics Big data, when handled properly, can lead to big change. Companies in a wide variety of industries are partnering with data analytics companies to increase operational efficiency and make evidence-based business decisions. From Kraft Foods using business intelligence (BI) to cut customer satisfaction analysis time in half, to a…

Unusual Clandestine Cloud Data Centre Service Locations

Unusual Clandestine Cloud Data Centre Service Locations

Unusual Clandestine Cloud Data Centre Service Locations Everyone knows what the cloud is, but does everybody know where the cloud is? We try to answer that as we look at some of the most unusual data centre locations in the world. Under the Eyes of a Deity Deep beneath the famous Uspenski Cathedral in the…

5 Surprising Ways Cloud Computing Is Changing Education

5 Surprising Ways Cloud Computing Is Changing Education

Cloud Computing Education The benefits of cloud computing are being recognized in businesses and institutions across the board, with almost 90 percent of organizations currently using some kind of cloud-based application. The immediate benefits of cloud computing are obvious: cloud-based applications reduce infrastructure and IT costs, increase accessibility, enable collaboration, and allow organizations more flexibility…

Sponsored Posts

From C:\Prompt To CYOD – The Timely Shift To Desktop as a Service

From C:\Prompt To CYOD – The Timely Shift To Desktop as a Service

The Timely Shift to Desktop as a Service There may be some colleagues lurking within any given workforce who remember what a C:\> prompt meant. Much like the ring from Middle Earth, it had the power to make things happen. Desktop computers at that time were large grey beasts, with their only wired connection being…

Cloud Logo Sponsors

hp Logo CityCloud-PoweredByOpenstack-Bluesquare_logo_100x100-01
cisco_logo_100x100 vmware citrix100
Site 24x7


Contributor Spotlight

Established in 2009, CloudTweaks is recognized as one of the leading influencers in cloud computing, big data and internet of things (IoT) information. Our goal is to continue to build our growing information portal, by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

Branded Content Programs

Advertising